Anita Soni: Hey, it’s Anita Soni from CIBC. So, Mark, three questions for you, increasingly more difficult. So, the first one, I think you mentioned that the Lumwana super pit. You mentioned that were phrasing that by the end of 2024, was that just the feasibility study, or would you have the super pit online by the end of 2024? Do you want–
Mark Bristow: I’m waiting for the next one.
Anita Soni: You want the next questions too, okay. The capital for 2023 declined from the guidance you gave in November. I just wanted to understand what the deferral was. Was that what you referred to with Veladero that the majority of that, I think, about $250 million would have been a deferral Veladero, or was there something else? And what number should we be adding on into 2024 instead? And the last one is just kicking that hornet’s nest that Greg has already kicked once. So, — and I wanted to give you an opportunity to respond because there’s been a lot of sort of conjecture about what your role would be in the recent M&A. And you’ve addressed sort of growth and just taking out things from a big picture perspective, but I think people are speculating whether or not you would be involved in any kind of break apart scenarios. And I just wanted to understand your view on that.
Mark Bristow: Okay. So Anita, I’ll take the most difficult one first and that is the capital, and Graham, answer it.
Graham Shuttleworth: Can I answer the easy one, which is the pre-feasibility study, which is going to be completed at the end of 2024? So to answer the first question, but on the capital, there were some areas where we managed to cut some capital, a little bit of capital in NGM. But really, I need to €“ the truth be told, when we present to you in the November Investor Day, we kind of just showed you a bar, which you then kind of took your ruler and got your number. And then when we guide in €“ with more detail as we do in 2023, we try and look at where we’re actually going to spend. And the reality with capital is, there’s often a bit of a lag between your ambition and what you actually get done in a year. And so we try and anticipate that in our guidance. So there isn’t any real major change to what we €“ what our target is, but we’re really just trying to give you a little more clarity on what the likely outcome is.
Anita Soni: So can I just follow-up with a question on the cost side of the equation. Those inched up a little bit from what was in November. So could you just talk about the key drivers for that?
Graham Shuttleworth: Again, there’s a little bit of swings and roundabouts. So you would have seen that there was slightly higher cash costs, slightly lower all-in sustaining costs. So there’s a little bit of swings and roundabouts moving between sustaining capital and operating costs as we optimize some of the mine plans. So that’s really all it is. It’s mostly driven by that. Some areas, we still had some inflationary pressure where we were adjusting for the latest input prices in areas, for example, in A&B. We’ve got some slightly higher fuel and explosive costs that are sort of lingering in those areas that we’ve adjusted in the model, but it’s more about just the sequencing and the optimization.
Anita Soni: One more follow-up on that one. As we go to 2024, I’m trying to remember, what the 2024 cost structure. I remember, the CapEx is pretty similar, but the cash costs, were they set to decline or similar? And should we be using sort of the level that we have now for 2023 into 2024?
Graham Shuttleworth: So in our forecasting, we have declining costs in 2024, and that’s really driven around our key assumptions around the input prices. So it’s really driven around in particular oil and energy process. So 2023, our key assumption around oil is $90 a barrel, which is very similar to the actual oil price for 2022. So our input prices for 2023 are very similar to 2022 in that sense. In 2024, in our forecasting, we’re assuming oil drops down to $75 a barrel, and so that brings our cost down. And then on the flip side of that, if you look at our profile, it’s increasing slightly. So if your costs are coming down and you’re increasing your ounces slightly then you also get a little benefit on your cost per ounce.
Mark Bristow: And you could add to that, Anita, the fact that remember we’ve heavily investing in green energy and that brings a big saving. So the extra solo installation at Kibali €“ Kibali’s been fantastic. Imagine what Kibali would look like on diesel, and it’s €“ during the rainy season, it’s 96% hydro now, and we want to try and keep that through the dryer season. That’s why we’re putting in solar to be able to support that, and batteries, because we’ve learned a lot about batteries. And really, the battery is the one that make — we’ve got a local grid there, it makes the grid. And so if we can feed the battery with solar and hydro, we stabilize the grid and we reduced the amount of — and we’re doing that across the group.
We’re adding more solar in Loulo. So we’ve learned a lot about managing micro grids with renewable energy, and that will also have a positive impact on our fuel bill going forward. And the easiest question of the lot is, I’m not going down that rabbit hole.
Anita Soni: All right. Thank you.
Jackie Przybylowski: Thanks very much. It’s Jackie Przybylowski with BMO. I think most of the questions have been answered, and thanks for taking so much time with the answers. But, I guess, I’ll just ask a quick one on Reko Diq. It sounds like you’re moving forward at that and fairly quickly, is the impression I’m getting from today’s presentation. I know there’s a feasibility study or a technical report coming up soon. Is there any other catalysts or news events or announcements that we should expect maybe in 2023, before we see that study come out?
Mark Bristow: So just getting back to — before I go there, Jackie, Anita, the feasibility, we’re going to finish the pre-feas on Lumwana this year. So you’ll have a good handle and then with full feas into 2024. So we’re really focused on being able to understand the decision-making sooner rather than later. Reko Diq, we — the plan is to get the feasibility complete by the end of next year, and really, it’s around a couple of things; power, people and water and infrastructure. Infrastructure, we got — we believe we’ve got a strong initial plan, which is rail. And then it’s about building infrastructure, north, south infrastructure over time. Water, we’ve started already, and we — the plan is, we’re going to map the entire Chagai basin, which is — and the objective being that there’s a lot of water, aquifer water in that basin, and we’re mindful of not, sort of, poaching water from the farmers.
And so, we really want to understand the different deeper water systems in that area. Ultimately, long term, we’ll move to desalination over the long term. And Power, there’s an opportunity for geothermal power. So this place where we are, where Reko Diq is, is world headquarters for solar and wind. But as you know, that doesn’t offer 24/7 power. So there is a younger, but extinct volcano, but a very strong geothermal gradient, which we are currently, as we speak, mobilizing to drill it. We’re busy with the permitting, et cetera. And then our partners, of course, these are in the oil and gas business. And also the opportunity to link to the grid, although the grid has challenges on stability. And so we — that’s part of the feasibility. We will — so those three are really the focus.
And, of course, the baseline studies on environment and social, that’s already well-underway, and we had — we started that even last year. On the technical side of things, we’re pretty comfortable with the drilling, the drilled-out resource. We’ve got to finish tech in some geotech holes and we, of course, which is our DNA, we’re going to trend some of the holes just to make sure, it’s right, and the geomet — and again, the technology on flotation has changed materially since 2013 globally. And so we are looking at a big swath of test work on ground versus recovery and things like that and really looking at a much more modern approach to combination and managing the concentrate.
